Summary of this article
Financial advisors can advise on major decisions like creating wills, selling homes, tax planning, and investment.
They can help in ensuring a cash flow from the retirement funds by setting spending limits while keeping in mind inflation.
A large retirement corpus alone doesn't ensure security; one needs to ensure efficient utilisation, too.
Having a big corpus may not be a guarantee for your happy retirement because you also need to be able to utilise your funds efficiently and towards achieving your crucial retirement goals. A financial advisor can help you after retirement in keeping you financially healthy, also well as overcoming difficult financial situations. Here are three big reasons why you should hire a financial advisor after your retirement.
To Adjust The Income Stream As Per Financial Need
A financial advisor can make a more realistic judgment of your financial requirements after your retirement. Your monthly income requirement may vary as you get older, and a fixed income stream may leave you financially deprived. A financial advisor can estimate your income stream requirement in accordance with your lifestyle, inflation, and considering other factors, and also suggest appropriate steps to meet your financial needs.
For Making Big Financial Decisions
After retirement, you may come across a situation where you may have to make big financial decisions, such as making a Will, selling a home, tax planning, and investing the retirement corpus, among others. A financial advisor can guide you in all such situations.
To Make The Best Use Of The Retirement Fund
What if you outlive your retirement corpus? You would need to know your spending limit, so that you don’t overdraw your retirement fund.
A financial advisor can help you assess your financial capacity and, accordingly, make an estimation about how much you should spend over a period of time, while also considering inflation at the same time. This way, you can make the best use of your retirement fund without fear of exhausting it earlier than your remaining life after retirement.
A financial advisor may charge you a nominal fee for the services. So, before hiring an advisor, it is better to discuss the fees and the expected deliverables. You can talk to different financial advisors and check their records before you hire them. For retirement-related services, only choose a Securities and Exchange Board of India - registered investment advisor (Sebi RIA).
The author is an independent financial journalist
